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House Co-Sponsorship Memoranda
House of Representatives
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | December 24, 2014 08:51 AM |
|---|---|
| From: | Representative W. Curtis Thomas |
| To: | All House members |
| Subject: | Resolution calling for the study of a graduated income tax rate structure in Pennsylvania |
| In the near future, I plan to introduce a resolution directing the Legislative Budget and Finance Committee to conduct a study of, and offer recommendations on the fiscal impact of transitioning Pennsylvania from a single, flat rate Personal Income Tax to a graduated tax structure. Pennsylvania is one of only seven states in the nation with a single flat rate tax on all income. The PIT is levied against taxable income of residents and nonresident individuals, estates, trusts, partnerships, S corporations, business trusts and limited liability companies that are not federally taxed as corporations at the current rate (set in 2004) of 3.07 percent. In comparison, some 34 states nationwide have a graduated rate structure, which more closely reflects the structure used when calculating federal income taxes. Among those 34 states are Pennsylvania’s neighboring states Delaware, Maryland, New Jersey, New York, Ohio and West Virginia. My legislation simply calls for a study of transitioning Pennsylvania to a new graduated tax structure, asking for a comparison of our PIT structure to our surrounding neighbors, while taking a look at other taxes levied in those states, and the potential fiscal impact on Pennsylvania and its residents of making the transition. If we learn that adopting a new graduated income tax structure generates additional revenues, we may be able to look to this change as a way of providing meaningful local property tax relief to Pennsylvanians. Please join me in co-sponsoring this legislation. (Formerly HR 1044 of the 2013-14 Legislative Session) |
Introduced as HR64